Hong Kong now ranks lower among the costliest cities for rich people “living well”, with Singapore the most expensive for a fourth consecutive year, according to Swiss private bank Julius Baer.
This year’s “Global Wealth and Lifestyle Report”, released by the bank on Tuesday, assessed the costs of living well in 25 major cities around the world for high-net-worth individuals with bankable household assets of US$1 million or more, based on data about 11 consumer goods and nine services between November and March.
Hong Kong ranked fourth, down from third last year, with half the goods or services having become cheaper.
It had the cheapest jewellery, dropping from 19th to 24th, with Johannesburg excluded due to unavailability.
Once dubbed a shopping paradise for China’s rich, Hong Kong’s luxury goods sales are suffering due to changes in the spending habits of Chinese tourists, who, according to the bank, were increasingly turning away from traditional European luxury brands and favouring domestic labels.
Despite a recent market slump, Hong Kong’s homes remained the second-most expensive this year, trailing only Monaco.
Hong Kong continued to be the most expensive city in which to engage the services of a lawyer and among the costliest in which to obtain a master of business administration degree, the report said.
Despite being ranked the most expensive city, Singapore was benefiting from the global asset diversification amid geopolitical tension, thanks to the city state’s stability, strong rule of law and the sense of long-term security, said Yee Kim Tan, Singapore branch manager at Julius Baer.
“Increasingly, the question is not just which assets to hold, but where those assets should sit,” he said in a statement released by the bank. “In that context, Singapore continues to stand out as a natural choice.”
Zurich was ranked the second costliest city this year, up from fifth last year, and Monaco ranked third, up from fourth, with the changes partly attributed to currency appreciation against the US dollar.
London’s ranking slid from second to fifth, while Shanghai was unchanged at sixth.
Globally, the average prices of the basket of 20 luxury goods and services rose by 10.2 per cent year on year in US dollar terms. -- SOUTH CHINA MORNING POST
